RFID: Increasing Supply Chain Visibility
- October 24th, 2014
- By: Scott Robinson
A steady flow of real-time data leads to efficiency in the supply chain, and more data means more efficiency, says a report from the Aberdeen Group on supply chain visibility.
The importance of supply chain visibility is well understood, and the report cites an unexpected source as a potential boost for visibility in the enterprise: RFID tagging.
Use of RFID on product enhances the potential success of models for advance planning, according to the report. Companies using RFID in retail supply chains are five times more likely to successfully leverage statistical modeling to assess supply chain risk; retailers using RFID are almost ten times as likely to successfully raise visibility to traceability at item level.
RFID enables operational benefits including increased visibility into supply chain disruptions, end-to-end supply chain milestones, and landed costs, the report stated.
All of these benefits result in reduced trade compliance errors and associated fines, as well as supply chain velocity improvements of 15 percent.